Ron Rimkus, "These are examples of “shadow banking” activities that work outside the traditional banking system, and these “shadow lenders” each have third-party funding.
Human nature being what it is, the lending function is likely to shift more heavily into the shadow banking sector.
In order to get an adequate return on capital, commercial banks may be forced to lever up through third-party funding sources (not deposits). The initiative is also silent as to how leverage might manifest itself in other sectors, such as investment banks and other financial intermediaries."
Gary Joseph Chandler, "This is confusing to me. I thought the purpose of changing the Swiss Constitution was to Stop shady banking practises. [sorry 'shadowy']"
R. R. "The initiative is also silent as to how leverage might manifest itself in other sectors, such as investment banks and other financial intermediaries."
G. J. C., "Yes, Ron; why bother going through a Referendum if fractional reserve banking will, still, be able flourish wearing different masks. I was hoping this initiative was about ending "shadowy banking" and setting an example for the World. Now, we can't stop loan sharking and Ponzi schemes, completely so it's disheartening to read.
R. R., "The initiative is also silent as to how leverage might manifest itself in other sectors, such as investment banks and other financial intermediaries."
GJC, "What a crush on Hope to find out the end of fractional reserve banking will morph into, first cousin operations, shadowy banking." dang!